JERUSALEM, Oct 5 (Reuters) - Standard & Poor's Maalot on Monday lowered its rating for bonds of Israeli paper products maker Hadera Paper to 'A+' from 'AA-' with a 'negative' outlook, citing lower paper prices and demand.
'The decision reflects mainly the significant deterioration in the paper sector, which is suffering from lower demand and prices, the rise in the company's financial leveraging ... and the challenge the group faces in the current business environment in finding markets and achieving profitability for its expanded production capacity,' Maalot said in a report.
Clal Industries and Investments has a 59.5 percent stake in Hadera Paper.
Clal is a subsidiary of IDB Holding, one of Israel's largest holding firms.
(Reporting by Joseph Nasr) Keywords: HADERAPAPER RATING/ (joseph.nasr@reuters.com ; +972 2 632 2202; Reuters Messaging: joseph.nasr.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'The decision reflects mainly the significant deterioration in the paper sector, which is suffering from lower demand and prices, the rise in the company's financial leveraging ... and the challenge the group faces in the current business environment in finding markets and achieving profitability for its expanded production capacity,' Maalot said in a report.
Clal Industries and Investments has a 59.5 percent stake in Hadera Paper.
Clal is a subsidiary of IDB Holding, one of Israel's largest holding firms.
(Reporting by Joseph Nasr) Keywords: HADERAPAPER RATING/ (joseph.nasr@reuters.com ; +972 2 632 2202; Reuters Messaging: joseph.nasr.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
